Fast-Growing MN IT Co. Will Compete With Dropbox
Data backup and storage provider Code 42 Software, Inc., recently announced that it has expanded its services to include file sharing with the launch of its new software, SharePlan.
SharePlan is a file sharing platform similar to products offered by companies like Dropbox and Box. Like Dropbox, SharePlan allows users to synchronize and share large data files with one another via private or public clouds. What sets SharePlan apart however, according to Minneapolis-based Code 42, is the level of security it offers.
According to Code 42, “Employees unknowingly create corporate data security risks by adopting easy-to-use, cloud-based applications that give them the [file sharing] functionality they need.” But then, the company says, “IT loses control, left to manage the crisis when corporate data is inappropriately shared or breached.”
Code 42, which is best known for its “CrashPlan” software, a data backup and storage solution, says it has combined its expertise in data security with an easy-to-use file syncing and sharing software to give users the best of both worlds.
The company cited a report by Gartner analysts as saying, “It is encouraging to see that some endpoint backup vendors have also entered the file sync/share arena in an attempt to offer a more secure service to the enterprise.”
Code 42 was able to expand its product development line partly because of a $52.5 million investment it received in January 2012, which was reportedly among the largest venture capital deals in Minnesota’s history. A portion of the investment came from Eden Prairie-based Split Rock Partners, as well as California-based Accel Partners.
One of Code 42’s largest market competitors received an even larger cash infusion in July, however. California-based content-sharing IT company Box, Inc., said it received $125 million in investments for new technology and expansion, the majority of which came from private-equity firm General Atlantic LLC.
Still, Code 42 believes it can stand out in the growing market.
“We have an extraordinary advantage over the competition. Most users share and collaborate on a small portion of their data on a device,” Co-founder and CEO Matthew Dornquast said in a statement. “But for more than five years, via our CrashPlan endpoint backup, we’ve been storing everything on the device—every version of every file, with no limits on size and retention—while using significantly less bandwidth and storage than our competition. This experience makes us that much more proficient when working with the smaller subset of data required for sharing or collaboration.”
Code 42 said it believes SharePlan will be an attractive option for a number of its existing clients—including Adobe, Netflix, Target, and NASA.
A few months after its large capital infusion, Code 42 launched a subsidiary in Sydney, Australia with a regional office and a data center—and said it was eyeing expansion in Europe.
The company was recently recognized by Forbes as one of the top 100 most promising private companies in the country. It also made Inc. magazine’s 2012 list of the 5,000 fastest-growing private companies in America. It reported $18.5 million in 2011 revenue—and its sales grew 1,194 percent between 2008 and 2011, according to Inc.